New power plant approved for Grangemouth

The Scottish Government has granted consent for the construction and operation of a gas fired combined heat and power (CHP) plant at BP Kinneil Terminal in Grangemouth.

The Kinneil Terminal is adjacent to the Grangemouth petrochemical complex and processes about 40% of the North Sea crude oil production which is brought to the site via the Forties Pipeline System (FPS).

Up to 400 temporary jobs could be created during construction.

The Scottish Government said the Kinneil Terminal requires steam for heat energy to drive the necessary oil separation processes “and the proposed CHP Plant Project will meet those requirements.”

“As part of the Forties Pipeline System, the Kinneil Terminal is a strategic piece of oil and gas industry infrastructure and will provide long term security of service to the developers of new oil and gas fields who rely upon the Forties Pipeline System,” the government said.

“This combined heat and power plant falls within the Grangemouth Investment Zone that is identified in the National Planning Framework 3,” said Energy Minister Fergus Ewing.

“It is therefore within the National Development area where Ministers will support development that is needed to maintain the key infrastructure and industry at the Grangemouth Investment Zone, strengthening its nationally important role in freight handling, providing energy-related infrastructure and facilitating wider economic activity.

“This proposed development will provide welcome long-term security of service to developers of new oil and gas fields, at an otherwise challenging time for the wider oil and gas industry.

“There is consensus across stakeholders that we must retain critical infrastructure to ensure the long-term viability of the North Sea oil & gas industry.

“There is a long term sustainable future for the North Sea — which will be supported by investments such as these at BP Kinneil Terminal — and we are committed to using every lever at our disposal to support the industry through this challenging time.”